Business News of Mon, 20 Mar 201713
OMCs reduce prices to reflect tax cuts
Citi Business News’ checks at fuel stations have revealed that major Oil Marketing Companies (OMCs) have reduced the prices of their products for the second consecutive time this month; March.
The reduction is in line with the recent tax cuts announced by the government in the 2017 budget.
The OMCs earlier in the second pricing window of March reduced the prices of their products between 1 and 3 percent.
The reductions in prices have been necessitated by a directive from the National Petroleum Authority asking the various Oil Marketing Companies to adjust their prices to reflect the tax cuts effective Thursday, March 16, 2017.
Per the directive, the OMCs are supposed to reduce their price build up formula to reflect the 2.5 percent reduction in the Special Petroleum Tax rate from 17.5 to 15 percent and the scrapping of the Excise (Petroleum Taxes and Petroleum Related Levies).
At total for instance, a litre of petrol has dropped from 4 cedis 39 pesewas to 4 cedis 19 pesewas.
Also, a litre of diesel has dropped from 4 cedis 25 pesewas to 4 cedis 15 pesewas.
This represents a reduction of 4.5 and 2.4 percent respectively.
Goil has reduced the price of a litre of petrol from 4 cedis 26 pesewas to 4 cedis 18 pesewas while a litre of diesel has dropped from 4 cedis 22 pesewas to 4 cedis 17 pesewas.
At Shell, however, a litre of petrol has declined from 4 cedis 31 pesewas to 4 cedis 18 pesewas with a litre of diesel dropping from 4 cedis 26 pesewas to 4 cedis 17 pesewas.
Meanwhile checks at Engen Oil and Champion Oil have revealed that prices have dropped between 1 and 3 percent.
A litre of petrol is selling at 4 cedis 20 pesewas and 4 cedis 25 pesewas for Engen and Champion Oil respectively.
Also, a litre of diesel is selling at 4 cedis 18 pesewas and 4 cedis 20 pesewas respectively.